Federal government's apprentice trial receives strong uptake in Peel region

A trial offering Peel region businesses a wage subsidy to take on new apprentices has signed up 19 local companies within the first few months of launching.

Opening on January 1, the $60 million Australian Apprenticeships Wage Subsidy offers employers subsidies 75 per cent of the apprentice's award wage in the first year, 50 per cent in the second year, and 25 per cent in the third year.

Of those 19 local businesses in the trial, 15 are in Mandurah, two are in Pinjarra, one is in Boddington and one is in South Yunderup.

Canning MP Andrew Hastie said the trial would help local young people in the Peel region find apprenticeships and jobs while supporting the competitiveness of local businesses.

"I know of many local businesses that would love to put on more workers and apprentices, but who are held back by that initial cost," Mr Hastie said.

"Helping locals to start an apprenticeship by helping small businesses overcome that initial hurdle will have benefits for our entire community.

"This trial will provide benefits that flow throughout our community; from new apprentices who have a job and a career path, to local businesses who are helping to grow the number of skilled local workers."

Peel Chamber of Commerce and Industry's general manager Andrew McKerrell said apprenticeships and traineeships were "vitally important".

"Apprenticeships and traineeships provide incredible opportunities to our youth, however can come at a great cost to a small business. This is why these incentive and support programs are so vital, supporting and backing the small businesses who see the potential and choose to put on a new young worker, investing the time and expertise into them, knowing they will come out at the end as an asset to the community," he told the Mail.

"By removing the giant hurdle of mitigating the financial risks involved, programs such as the apprentice wage subsidy allow a small business to get back to what they do best, and invest in our collective future."

Minister for Small and Family Business Senator Michaelia Cash said having local businesses and apprentices involved in the trial is great for the community.

"Small business plays a vital role in regional communities, from giving young Australians their first real job to supporting local charities and sporting organisations," Ms Cash said.

"Through this wage subsidy we are investing in the skills that regional and rural businesses need to remain competitive and give local students opportunities at home."